WEBVTT - Delta Electronics Jumps, Recruit Soars, Zhongji Innolight Drops 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Well, let's take a look at some stocks on the

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<v Speaker 1>move today in Aita. I'm Stephen Carroll and I'm joined

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<v Speaker 1>by Bloomberg's market supporter Anthony Stevens for more. And so

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<v Speaker 1>let's start with a report that Nvidia is investing in

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<v Speaker 1>a data center power producer, posting a range of names

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<v Speaker 1>in Taiwan this morning.

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<v Speaker 3>Yeah, and that's kind of solidified sentiment around the data

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<v Speaker 3>center build out in Taiwan. There was some doubt about

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<v Speaker 3>the pace of USAI investments in the data center space.

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<v Speaker 3>We've seen some weakness in the neoclouds for example, but

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<v Speaker 3>the fact that Nvidia is putting them massive balance sheet

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<v Speaker 3>behind this team has really helped things. So you see

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<v Speaker 3>names like ASE or Delta Electronics, which is actually coincidentally

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<v Speaker 3>one of the biggest stocks in Thailand, which its subsidiary there.

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<v Speaker 3>One of the largest Delta is uplimit up. You have

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<v Speaker 3>light On pretty close to limit up, and a whole

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<v Speaker 3>range of these kind of AI infrastructure names hovering around

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<v Speaker 3>limit up, so Tatawan Limit up is up ten percent

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<v Speaker 3>and that market is on fire on this theme.

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<v Speaker 1>We're also seeing some big earnings related moves in the

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<v Speaker 1>Japanese market today.

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<v Speaker 3>Yeah, Japan's been standing out in terms of the volidity

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<v Speaker 3>around earnings, and today most of those earnings seem to

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<v Speaker 3>be resolved on the upside across a range of sectors.

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<v Speaker 3>So we have Recruit, which was up around twenty percent

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<v Speaker 3>now it's on special quotation de beat on earnings. This

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<v Speaker 3>is a software play that strikes at a wide swathe

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<v Speaker 3>of kind of Japanese corporate software needs. They are twenty percent.

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<v Speaker 3>This is part of the big squeeze in software that

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<v Speaker 3>even the US has been seeing, and to a less

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<v Speaker 3>extent in Europe as they kind of capitalize on cheaper AI.

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<v Speaker 3>There's also twenty percent moves in cismes and a relatively

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<v Speaker 3>household name, Seiko Watchers is up fifteen percent as well

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<v Speaker 3>after raise guidance, So quite a decent way that the

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<v Speaker 3>japan manufacturing universes up around fifteen two percent after earnings.

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<v Speaker 1>Yeah, pretty major moves on the flip side, though, Chinese

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<v Speaker 1>opticle names continue to be trailed by being excluded from

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<v Speaker 1>the US market.

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<v Speaker 3>Yeah, so this is one of those China Ai exports

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<v Speaker 3>success stories, the optical transceivers that connect servers together, and

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<v Speaker 3>they were exporting most of their manufacturing to the US.

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<v Speaker 3>Now President Trump wants to kind of centralize that technology

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<v Speaker 3>at home, and also there are some concerns that these

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<v Speaker 3>technologies can transmit data back to China, which are obviously unsubstantiated.

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<v Speaker 3>But the excluding of this sector from the US has

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<v Speaker 3>caused a real big dent in positioning. This is one

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<v Speaker 3>of the biggest constituents of the Chinese Index. It's around

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<v Speaker 3>twenty percent of the Chinese Index, and Chinese domestic retail

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<v Speaker 3>is very strongly position in this now as they have

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<v Speaker 3>no idea what is going to happen on the regulatory

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<v Speaker 3>side from the US, they're cutting first and asking questions later.

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<v Speaker 3>So zongji Ino Light is down eight point three percent

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<v Speaker 3>and eopto link is down seven and the Chinese Index

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<v Speaker 3>as a whole is down two. Bear in mind zongji

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<v Speaker 3>in a light listed in the in Hong Kong just

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<v Speaker 3>a couple of days ago, and it was one of

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<v Speaker 3>the largest IPOs in around seven years.

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<v Speaker 1>Yeah, certainly really interesting sexual to be keeping an eye

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<v Speaker 1>on as well. Thinking a bit more broadly about the

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<v Speaker 1>market santry too. We've been having this discussion about the yen,

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<v Speaker 1>and it's slowly retracing some of those gains after the intervention.

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<v Speaker 1>Weaker again, four tenths of one percent today, one fifty

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<v Speaker 1>eight against the dollar. I mean, how likely does further

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<v Speaker 1>intervention look when we're looking at the weakness returning to

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<v Speaker 1>the Japanese currency.

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<v Speaker 3>This speaks to some kind of vagueness around the goals

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<v Speaker 3>of the intervention in the first place, right, like in

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<v Speaker 3>the sense that Japan does not want a materially stronger yen.

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<v Speaker 3>From the looks of it, it's a limited intervention. It

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<v Speaker 3>just wants to prevent one way speculation in the en,

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<v Speaker 3>and to that extent it has kind of succeeded in

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<v Speaker 3>the sense that the speculators have halved their CFTC kind

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<v Speaker 3>of speculative shots. On the end, the en volatility is

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<v Speaker 3>a lot higher than it used to be, and the

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<v Speaker 3>en is hovering around the two other day moving average,

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<v Speaker 3>So in that sense, you know, it's no longer so

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<v Speaker 3>easy to bet on the direction of the end. In

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<v Speaker 3>the other sense of the word, though, intervention cannot be

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<v Speaker 3>successful unless the BOJ follows through and in that vein

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<v Speaker 3>the fact that one BOJ member is on the tapes

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<v Speaker 3>talking about a faster pace of hikes than the market anticipates,

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<v Speaker 3>that is interesting. That is the kind of messaging the

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<v Speaker 3>market will need for the end to strengthen kind of appreciably.

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<v Speaker 3>But until we see action from the BOJ, until we

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<v Speaker 3>see Tokyo inflation, for example, pick up markedly, the kind

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<v Speaker 3>of conviction around yen strength is going to be limited

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<v Speaker 3>and people are going to continue to pick a fight

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<v Speaker 3>with it. Now we have US inflation and the US

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<v Speaker 3>Treasury auctions in the middle end of that week, and

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<v Speaker 3>to be fair, it probably is more important to the

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<v Speaker 3>dollar end what the dollar leg of the creators.

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<v Speaker 2>The Stockmover's report from Bloomberg Radio. Check back with us

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